Why Binance Coin, Litecoin, and Zcash Are Seeing Double-Digit Surges Today

What happened

Ahead of today’s highly anticipated release of the minutes from the last Federal Open Market Committee (FOMC) meeting, investors in a range of risk assets are seeing notable surges. In the cryptocurrency space, this is certainly true, with many top tokens seeing double-digit gains in today’s session.

Among the notable gainers this morning are Binance Coin (BNB 11.56%), Litecoin (LTC 11.95%), and Zcash (ZEC 10.95%). As of 9:30 a.m. ET, these three tokens had surged 11.7%, 12%, and 11.9%, respectively, over the past 24 hours. 

Investors appear to be holding out hope for some explicit signs that a cooling of interest rate hikes could be on the horizon. The outsize moves among mega-cap tokens such as Binance Coin and Litecoin appear to be directly tied to this sentiment today. Litecoin has also been on a nice tear in recent days, surging on increased activity among crypto whales, as well as on news that the network has surpassed the key milestone of 135 million transactions.

While Zcash appears to be benefiting from these sector-wide trends, a number of reports today highlighting the increasing prevalence of Zcash as a beneficiary of any sort of crypto regulation have sent this token to levels last seen more than two weeks ago.

So what

There’s plenty to watch in the crypto world right now. From a macro perspective, it appears investors in stocks, bonds, and crypto for that matter are all focused on what the Federal Reserve has to say. At some point, the buck stops with the Fed. And the idea that the next bull market is around the corner appears to be tied to the idea that the next pivot will take place soon. 

Interestingly, Binance Coin, Litecoin and Zcash each have unique token-specific catalysts investors are watching closely right now. As the world’s largest exchange, Binance’s BNB token could see more market share gains as a result of the FTX bankruptcy. Litecoin is seeing interest surge among whales, with transaction volumes continuing to make new records. And Zcash remains a go-to option for those seeking privacy on the blockchain.

Thus, perhaps this rally does have legs, given what appears to be an increasing focus on these these tokens’ upside catalysts relative to bearish market headwinds in recent days.

Now what

The question in the minds of many investors right now is whether any sort of project-specific catalysts can outweigh the larger macro and sector-wide concerns that have hit crypto hard of late. The fact that major crypto exchange FTX is the latest to seek bankruptcy protection doesn’t bode well for investors betting that this space can thrive long-term. With regulators circling, and now less likely to enact growth-friendly legislation on this sector, there’s plenty to remain worried about.

That said, it appears all investors are passing on some holiday cheer today. Perhaps the market is primed for some sort of reprieve.

Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.


Be the first to comment

Leave a Reply

Your email address will not be published.


*